Meta To Acquire Rivos To Power AI Ambitions: Report

Meta Platforms (NASDAQ:META) is doubling down on artificial intelligence with massive chip investments, potential acquisitions, and record capital spending.

The U.S. Big Tech giant is pushing deeper into AI infrastructure, exploring chip startup deals while committing up to $72 billion in 2025 capital expenditures.

Meta is acquiring chips startup Rivos to accelerate its semiconductor ambitions and gain more control over the infrastructure powering its AI work, Bloomberg reported on Tuesday citing unnamed sources familiar with the matter.

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The financial terms of the transaction remain undisclosed.

Rivos is developing its own graphics processing unit, known as a GPU, which is the chip that powers most AI-related work.

Benzinga reached out to Meta’s investor relations for comment on the story and is awaiting a response.

While Meta already develops in-house AI chips under its Meta Training and Inference Accelerator program, it continues to splurge on GPUs from external partners such as Nvidia (NASDAQ:NVDA).

The Information previously reported that Rivos sought funding at a $2 billion valuation in August.

Meta stock has gained over 25% year-to-date topping Nasdaq Composite index’s over 17% returns backed by its upbeat quarterly earnings, AI-driven revenue growth in its core advertising business, capital expenditure boost for its AI infrastructure, and optimism surrounding monetization efforts like ads on WhatsApp and Threads. 

Meta has been striving reduce its reliance on Nvidia by designing custom inference chips, aiming to cut costs. Progress, however, has reportedly lagged behind CEO Mark Zuckerberg’s expectations, prompting Meta to explore acquisitions.

The deal coincided with Zuckerberg’s prioritization of AI, committing up to $72 billion in capital expenditures this year, much of it for AI infrastructure, and securing $29 billion in financing to build a Louisiana data center.

The acquisition follows Meta’s earlier, unsuccessful bid to acquire South Korea’s FuriosaAI for about $800 million.

Meta held $47.07 billion in cash and equivalents as of June 30, 2025.

Meta expects third-quarter revenue of $47.5 billion to $50.5 billion versus estimates of $45.87 billion, per Benzinga Pro.

Meta expects full-year 2025 expenses of $114 billion to $118 billion. The company anticipates full-year capital expenditures of $66 billion to $72 billion.

Price Action: Meta stock was trading lower by 2.05% to $719.33 at last check Wednesday.

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